Rheinmetall AG shares plunged the most since late June in European trading after the German defense manufacturer slashed its annual sales forecast for the second time in months. Berenberg analysts pointed out that "Weapon & Ammunition drives most of the guidance cut."
The company, which makes tanks and armored vehicles, artillery, ammunition, air-defense systems and military electronics, now expects 2026 revenue of about $14.8 billion, down from its previous forecast of $15.37 billion to $15.93 billion. The operating margin forecast was also pared down to 18.5% from 19%. A guidance cut in August followed Germany's cancellation of orders for six F126 frigates.
Berenberg defense analyst George McWhirter provided a first-take analysis of the earnings release: em>Weapon & Ammunition drives most of the guidance cut: Rheinmetall's Q3 release this morning provides more detail following the Q3 pre-release and full-year guidance downgrade yesterday evening. Weapon & Ammunition drives most of the cut to the full-year guidance, with the remainder attributed to Vehicle Systems. There is no updated order intake guidance provided. The downgrade highlights the execution and order intake risk, stemming from the significant ramp-up in defence programmes to 2030, which poses a risk to medium-term estimates, in our view. Key details to look out for on the conference call at 1pm UK time (2pm CET) include the company's updated estimate on the timing and size of the Arminius contract award, as well as the company's Q4 order intake expectations.
